Thursday, January 31, 2019 11:12 AM (GMT + 7)
Two German companies Hoang Anh Gia Lai and Hoang Anh Gia Lai Agrico suddenly announced a major loss in the fourth quarter of 2018.
HAGL Agrico lost 354 billion dinars in the quarter 4/2018
In the afternoon of January 30, the International Agricultural Company Hoang Anh Gia Lai (HNG) announced a financial report for the fourth quarter of 2018 with bad business results. Detailed net revenue of HNG is 891 billion dong, which is 38.5% more than the same period last year.
Sales of fruits continue to be the largest source of revenue for HNG when it reaches 496.5 billion dong, the remainder of the sale of rubber latex (221 billion dong); sales of chilli (67 billion VND); sales of goods, commodities and by-products (RSD 47 billion); selling cows (48 billion VND).
Revenue structure of HAGL Agrico
However, due to the unusually high cost of capital, it reached 689 billion dinars, which means that the gross profit of HNG was only 201 billion dinars. After deducting all types of sales costs, corporate management costs, HNG's net loss is nearly 172 billion dong. In addition, the HNG recorded another loss of RSD 174 billion. As a result, this company recorded a net loss of 354 billion dong in the fourth quarter, but this result is still better than Q4 / 2017 when the loss of 422 billion dong.
Accumulated for the full year of 2018, HAGL Agrico achieved a total revenue of CU 3695 billion and a loss after tax of 644 billion USD, while earning 530 billion CGUs in the previous year. A very disappointing result for the shareholders of this business.
As of 31 December 2018, the total assets of HNG reached 30,700 billion CNY, which is by 1,582 billion dinars less than the beginning of the year. Short-term debt of HNG increased by 2.371 billion VND to 8.718 billion VND, long-term debt decreased by RSD 4.475 billion compared to the beginning of the year.
Also recently, the HNG also had a progress report on the use of capital from the convertible bonds bid in 2018. That number of bonds HAGL Agrico sold to Thaco in August 2018 raised 2.217 billion dinars.
Mr. Doan Nguyen Duc – President of HAGL
According to the plan, HAGL Agrico uses VND 1.080 billion to finance restructuring, and VND 1.137 billion for investment in planting and fodder management. In which investment is 4,000 ha of banana 780 billion of VND, and the investment in 2,000 ha of pepper is 357 billion VND. However, HAGL Agrico has invested $ 1,028 billion to invest 5.275 ha of banana while spending 109 billion dinars on 610 ha of chilli. The reason is that the banana market is more favorable than chilli.
HAGL also recorded a loss of 378 billion dong in Q4
Likewise, as with HNG losses, HAGL's parent company also recorded a net loss of 378 billion dong in the last trimester of 2018. compared to the same period of 2017.
Similar to HNG, HAGL's COGS also grew rapidly, so gross profit fell sharply. Although financial costs, business management and sales have been successfully reduced, the company still has a loss of 378 billion dong. In the same period last year, HAGL also lost over 657 billion dong. So although it is not profitable, HAGL has also reduced its losses.
Results of HAGL's acquisition in the fourth quarter and throughout 2018
Given the huge profit gained in the previous quarter, the HAGL gained revenue of 5.392 billion dong in 2018, a net profit of almost 6.5 billion dong, down 98.2%. Currently, the total liabilities of the HAGL amount to RSD 31.613 billion, of which bank credits amount to RSD 21.816 billion.
On the stock exchange, a couple of HAG-HNG shares have also had quite a negative development recently. At the end of January, the HAG was stopped at 5,000 CNY per share, which is the lowest of the listing. The HNG was also stopped at the VND 14,200 per share, which is the lowest since July 2018.
After the announcement, Vietnam's steel giants immediately drove hundreds of billions of dong.